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Harmonic Patterns

5 TRADER'S MISTAKES IN TECHNICAL ANALYSIS AND PRICE ACTIONThe ability to interpret candlestick patterns and patterns gives us the key to understanding price movements. Once you learn how to read charts, you can trade any instrument in any market. From a technical point of view, everything seems to be as simple as possible. Why then most traders can't get stable profits? Of course, everything can be put down to lack of experience or an inoperative trading strategy. Trading psychology also plays a big role. Many problems arise due to lack of patience and discipline. Traders often tend to overcomplicate their market analysis. I have therefore compiled a list of the five most common mistakes in technical analysis and price action: 1 MISTAKE - LEVELS ARE DRAWN BY CANDLESTICK BODIES, NOT BY THEIR SHADOWS Cutting off candlestick shadows when making key levels is one of the most common mistakes. Notice the picture to the left - how the levels on the chart cut off several candlestick highs and lows. When you cut off candlestick shadows in this manner, you limit your ability to successfully trade on trend lines. Not only will you have difficulty identifying the breakout, you will also have difficulty identifying the right entry point. Now take a look at the chart to the right - here is an example of how we were supposed to draw a channel, how perfectly the support resistance levels match the highs and lows of the candlesticks. The difference between the two charts above may not seem like much. But all the nuances lie in the details. 2 MISTAKE - TRADING ON PRICE PATTERNS WITHOUT CONFIRMATION Being able to find price action patterns is great, but the patterns themselves often mean nothing. Many traders try to trade price patterns and patterns before they have even formed, hoping to enter the market at the best price. 3 MISTAKES - TRADING ON SMALL TIMEFRAMES Most traders want to make trades and profit every day. However, professional traders know how important it is to stay out of the market and wait for the right trading opportunities. They are extremely selective in opening trades and risk their trading capital with utmost caution. Most beginners prefer lower timeframes, because then they have the opportunity to trade more often. They believe that the more trades they make, the more money they can make. But in trading more trades doesn't mean more money. When it comes to technical analysis, the big timeframes will always give better signals. In doing so, they filter out most of the market noise. In other words, they smooth out price movements. This is especially true during periods of increased volatility. 4 MISTAKE - IGNORING SUPPORT AND RESISTANCE LEVELS I am referring to key levels that have been formed by the market regardless of the pattern you are trading. By being aware of all critical levels in the path of price movement, we can make decisions to close or hold a position based on logic rather than emotion. Therefore, always mark support and resistance levels first before entering the market. 5 MISTAKES - TRADING ON BAD OR UNCLEAR PATTERNS What do I mean by bad or unclear patterns? In a nutshell, they are patterns that are not immediately apparent. If it takes you more than a couple of minutes to find a pattern on a chart, it's probably not worth trading. Even if you have only been trading for a month and haven't yet studied all of the price action patterns, you should still be able to find price patterns in minutes.
Education
by Yuriy_Bishko
26
Why do you NEED a diaryMy philosophy is based on simplification. I believe that reducing a problem to its fundamental parts helps us to better interact with them, and by being fundamental, our results are maximized. It's like fixing a room. It is no use spreading our attention to details such as the type of lamps while neglecting the underlying problem, which can be a large coat of paint or an unforgivable hole in the ceiling. If habitability could be classified in points, at the same time invested, we will earn many more points by fixing the block earlier than by reflecting on the type of light in the bulbs. Of course everything must be dealt with, but trading has a lot of variables, and most importantly, a lot of emotionality. Investing in the stock market notably activates the limbic part of our brain, and it robs the neocortex of prominence, making it more difficult to identify problems with this emotional blindness. Therefore I think that we must minimize the variables to the most important to maximize our attention in each one of them. But to reduce trading to the fundamentals, the person must first be analyzed to identify the root of their problems. Does the person have adequate knowledge? Perhaps he has good technique in theory but the execution is not good, or his problem lies in the situation of keeping an open operation, something very common, since our survival instinct makes us exit the market at the minimum profit opportunity, without having Keep in mind that this profit must cover the losses we have until the next profit occurs. The reverse is also very common, people who had carried out an analysis and the price has overflowed negatively, but are unable to close the operation because they do not want to accept having lost, and finally the price continues in that direction contrary to their analysis, causing them to lose a lot more money. As much as when going to the doctor, advancing in the trading career requires identifying what individual problems you have and applying the appropriate remedies, that is, working on the weaknesses. For this, it is essential to review the operations at a time and draw conclusions, and for this it is essential to keep a daily trading journal, preferably in a physical notebook, of each day of operation, so that it can be reviewed each end of the trade. week and progressively correct mistakes and enhance what already works for us, to avoid committing them again and spending years going around in circles. I personally use a physical notebook for a lifetime. I do it this way for various reasons, and although in principle it can be argued that it is much more practical to write it on a computer, with the option of uploading it to the cloud and accessing it from anywhere, each person works in a different way, and I, After trying in virtual and physical, I have decided on physical, because it works better for me personally. The reasons I have, again I stress very personal, are the following: - I usually use the computer a lot so I always end up with a desk full of documents, shortcuts, stickers of ideas that come to mind ... keeping a diary requires discipline, and added to the fact that I am quite clueless, if I do not have a notebook There are times when I don't even remember writing it when I open the operations. However, when I have the notebook next to the computer and always in my range of vision, I never forget it. - Writing with a pen requires more time than using a computer. I learned to type and can type at high speed on the keyboard, however writing on the notebook is much slower. This, far from being a disadvantage, I see it as a great advantage, since as I write I have more time to reason it, so it is easier to reach conclusions as it is written and that the result has more value for later analysis. - It is easier for me to add graphic parts to the written part. When I write when I open a trade, I always tend to draw more or less the shape of the price it has at that moment and indicate with an arrow my entry point and stop loss. This could be done on a computer and then added to the text document if it is made virtual, but it seems faster and easier to me to just stop writing and draw it. - Writing in a physical notebook is totally private, they will never be able to sneak a virus into you and steal your information if you write it on paper. As you can see, virtual or online is not always the best for everyone. That said, the way I keep my journal is as follows: - The first thing I do is write the date. - I write the time and the market symbol of the trade I have opened, the why, and then I draw more or less the current price and the stop loss level. - On Sunday I review every week. What I do is start with the first trading day of that week and see what the price really did. I write the newspaper in blue, and the weekly review in red: I draw in red more or less the price movement that happened after the operation. I also write if I was right or wrong. If I was correct, I see if I could have won more and to what extent. If I have failed I analyze why. I finally draw a conclusion, if there is one, and move on to the next day. Sometimes the only conclusion is that simply the price movement has gone against and no sense can be found, so I assume it as an irreparable statistical loss. After the page of the last day of that week, I write the date and a title with "reflections of the week", and I write again all the conclusions that I have drawn each day and then I make a final reflection on those conclusions to see if You may see a pattern of behavior or technical failure that may change for the following week. As you can see, I am very methodical when it comes to my trading, and this has helped me greatly to polish mistakes that I could not have realized if I did not keep a journal. In the day to day of life many things happen that can distract you and sometimes keep you making very absurd mistakes, that if you had reviewed your operation a little, you would have quickly realized. For these reasons I believe that anyone who boasts of having results in this business must realize that it is necessary and make an effort to create this habit.
BITSTAMP:BTCUSDEducation
by jonfuentesX
Elliot Waves Complete Guide | Chapter 2.3 - "Extensions"Hello Traders. Here we will examine extensions as a final conclusion for chapter 2. Chapter 2 - Motive Waves: 2.1 Impulse, Leading Diagonal 2.2 Ending Diagonal , Truncation 2.3 Extension, Fifth Wave Extensions ------ What are extensions? Most impulses contain a degrees called "extensions" An extension is an extended wave with amplified subdivisions within the main picture. • The majority of impulse waves has one extension (please refer to the previous post if you are lost on what an impulse is!) • The most common extension is on wave 3, although wave 1 and 5 are also possible. • Subwave 2 could not be labelled as a Wave 4, because it overlaps with wave (1)! • Subwave 1 is shorter than wave (1) → If Subwave 1 is considered an impulse wave, than an extended wave 3 is the most likely considered as an expectation. ❗If wave 3 is the same size as wave 1, we would expect an extension of wave 5. ❗If wave 3 is extended, wave 5 will often resemble wave 1 in time and length. Case For Fifth Wave Extension of Fifth Wave Extension These types of impulsive waves are extremely difficult to trade, and as a consequence, traders will notice them only after the fact. It is common that when the fifth wave extends, margin calls are triggered as the vast majority of traders are caught in the wrong direction. An extension may also have an extension within itself. Getting confusing? Yes - but this is extremely important when drawing the main picture. This mostly happens in the third of fifth wave of Elliot Waves. Normally, you would expect a trend change at the point of (1), because five waves took place. But the trend remains intact and new highs are made consistently. → This is where novices get eaten by the market in one huge loss, as extensions tend to go on forever. ❗As only one Wave can be extended, if wave 3 is the same size as wave 1, we would expect an extension of wave 5.
BITSTAMP:BTCUSDEducation
by XForceGlobal
53
Merry ChirstmasThe holidays are here and we want to send our biggest thank you to everyone. The daily support, feedback, and outreach is invaluable. Thank you! 🙏 During this time, we're reminded of how important it is to be thankful. 2020 has been a challenging year, but together, we can make 2021 much better. Our goal is to continue building a platform that gives anyone, no matter your location, instant access to the highest performing tools, data, and charts. As a way to continue spreading the love, write what you're thankful for in the comments below. It could be something new you learned, a great trade you made or even someone you follow for unique ideas and insight. That's right, go ahead and make someone's day by tagging their username in the comments.
Education
by UnknownUnicorn11526044
1
Harmonic Patterns With Advanced Explanations Check It OutHarmonic price patterns are those that take geometric price patterns to the next level by utilizing Fibonacci numbers to define precise turning points. Unlike other more common trading methods, harmonic trading attempts to predict future movements. Let's look at some examples of how harmonic price patterns are used to trade currencies in the forex market. ----------- KEY TAKEAWAYS Harmonic trading refers to the idea that trends are harmonic phenomena, meaning they can subdivided into smaller or larger waves that may predict price direction. Harmonic trading relies on Fibonacci numbers, which are used to create technical indicators. The Fibonacci sequence of numbers, starting with zero and one, is created by adding the previous two numbers: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. This sequence can then be broken down into ratios which some believe provide clues as to where a given financial market will move to. The Gartley, bat, and crab are among the most popular harmonic patterns available to technical traders. ---------- Geometry and Fibonacci Numbers Harmonic trading combines patterns and math into a trading method that is precise and based on the premise that patterns repeat themselves. At the root of the methodology is the primary ratio, or some derivative of it (0.618 or 1.618). Complementing ratios include: 0.382, 0.50, 1.41, 2.0, 2.24, 2.618, 3.14 and 3.618. The primary ratio is found in almost all natural and environmental structures and events; it is also found in man-made structures. Since the pattern repeats throughout nature and within society, the ratio is also seen in the financial markets By finding patterns of varying lengths and magnitudes, the trader can then apply Fibonacci ratios to the patterns and try to predict future movements. The trading method is largely attributed to Scott Carney although others have contributed or found patterns and levels that enhance performance. Issues with Harmonics Harmonic price patterns are precise, requiring the pattern to show movements of a particular magnitude in order for the unfolding of the pattern to provide an accurate reversal point. A trader may often see a pattern that looks like a harmonic pattern, but the Fibonacci levels will not align in the pattern, thus rendering the pattern unreliable in terms of the harmonic approach. This can be an advantage, as it requires the trader to be patient and wait for ideal set-ups. Harmonic patterns can gauge how long current moves will last, but they can also be used to isolate reversal points. The danger occurs when a trader takes a position in the reversal area and the pattern fails. When this happens, the trader can be caught in a trade where the trend rapidly extends against him. Therefore, as with all trading strategies, risk must be controlled. It is important to note that patterns may exist within other patterns, and it is also possible that non-harmonic patterns may (and likely will) exist within the context of harmonic patterns. These can be used to aid in the effectiveness of the harmonic pattern and enhance entry and exit performance. Several price waves may also exist within a single harmonic wave (for instance, a CD wave or AB wave). Prices are constantly gyrating; therefore, it is important to focus on the bigger picture of the time frame being traded. The fractal nature of the markets allows the theory to be applied from the smallest to largest time frames. To use the method, a trader will benefit from a chart platform that allows him to plot multiple Fibonacci retracements to measure each wave. Types of Harmonic Patterns There is quite an assortment of harmonic patterns, although there are four that seem most popular. These are the Gartley, butterfly, bat, and crab patterns.
BITSTAMP:BTCUSDEducation
by GentleGoldenEngine
122
An up and down channelWelcome Back. Please support this idea with LIKE if you find it useful. *** What Is an Ascending Channel? An ascending channel is the price action contained between upward sloping parallel lines. Higher highs and higher lows characterize this price pattern. Technical analysts construct an ascending channel by drawing a lower trend line that connects the swing lows, and an upper channel line that joins the swing highs. *** An ascending channel is used in technical analysis to show an uptrend in a security’s price. It is formed from two positive sloping trend lines drawn above and below a price series depicting resistance and support levels, respectively. Channels are used commonly in technical analysis to confirm trends and identify breakouts and reversals. *** A bearish channel is a continuation chart pattern (of a trend). A bearish channel is formed by two parallel bearish lines. The price progresses between these two parallel lines; the upper line is called the "resistance line"; the lower line is called the "support line". Each of these lines must have been touched at least twice to validate the pattern. NB: a line is said to be "valid" if the price line touches the support or resistance at least 3 times. This implies that the bearish channel pattern is considered valid if the price touches the support line at least 3 times and the resistance line twice (or the support line at least twice and the resistance line 3 times).
Education
by Saeed966
2
Pattern: how to use for make moneyCan you see the green light turn on? Cross the road. Can you see it raining outside? Take an umbrella. Do you see that there is a formed pattern on the currency chart? Analyze the market, specify which pattern it is, predict the price behavior, spend your profit. A pattern is a graphical figure on a chart created by repeating price combinations and displaying the pattern of price movement. Classification: Trend continuation patterns (after a pattern is formed, the price continues to move in the same trend in which it opened it). 1. Classic triangle It is formed by two lines, one of which is located on the chart at right angles to the coordinates (level). To form a pattern, at least 4 price touches are required. And you can start trading only after the pattern is completely formed - in this case, the price breaks through the level, “fixes on it by means of a rollback and continues to grow. 2. Pennant Here, the upper line of the figure is not the level, but that line. Both lines must not be parallel (otherwise it will be "Flag"). If a straight line is drawn from the vertex of the intersection of the lines, it should divide the line of the figure base in half. The mechanics of the pattern: 4 touches, complete formation of the pattern, rebound from the line, opening a trade. 3. Flag. To form this figure, only three points are needed and its slope on the chart can be absolutely any. There is no need to wait for the price to form a pattern and leave the pattern. The deal is opened after the price rebounds from the third point. Reversal patterns (change the direction of the trend after the completion of the formation) 1. Head and shoulders Depending on the trend, it can form at local lows (in a downtrend) or highs (in an upward) price. “Neck” is a straight line at the base of the figure. After the complete formation of the pattern, we can expect the price movement equal to the size of the pattern's height: from the middle of the “neck” to the top of the “head”. 2. Double / Triple Top-Bottom The pattern is very similar to the Head and Shoulders, with the difference that the extremes (tops of the pattern) are located approximately on the same line. The “Double Top” pattern type implies the presence of two extremums and is a “bearish” pattern - that is, after its formation, the price changes its trend from upward to downward. “Double Bottom” is on the contrary a “bullish” pattern that changes a downtrend to an uptrend. 3 Wedge Almost like a triangle, but incomplete. Feature: slope down (downward) or up (upward). The lines of the figure intersect, but not in the foreseeable space, but if they are mentally lengthened. In a reversal pattern, prior to the formation of a pattern, there should be no momentum that determines the direction of the trend. Do you use patterns in trading? ------------------------ Share your opinion in the comments and support the idea with likes. Thank you for your support!
Education
by DeGRAM
6
How to Objectively place Fibonacci RetracementsI've seen people place retracements in interesting ways and just want to show an objective way to place your retracements. You need a top, a bottom, and a corrective wave or reversal that you are analyzing. Now, fibs are everywhere and you can place them however works best for you and there is no ONE way, but this is for people who want to approach learning fib in the most objective way possible. I believe it is smart to have strict rules in your trading system and rules that align with what most pros are used to following. Good luck, HOOP
OANDA:XAUUSDEducation
by UnknownUnicorn1269892
1
Book reviews | Even at SNB Capital do this ...Reading this book ("the Messenger" by Klaus Joel), you may think: "why am I doing this? No practical use." The author wrote a fictional story about an angel who teaches to "send love" to events or people, thereby harmonizing them and charging them for a positive outcome. Everything would be fine if we did not use such practices ourselves and did not have excellent results in doing business (all 4 funds managed by us are in a good plus, and most of the recommendations that we wrote about in the network brought excellent income to those who used them). In General, many hours of classes on the REIKI system make themselves felt (the essence of the system is very similar to the one described in the book). Well, the TOP idea of this book: if you believe in "IT" , then it works for you! PS: by the Way, I don't think that world-famous traders from SNB Capital are engaged in "nonsense", spending every day meditating on the successful outcome of the day, visualizing the outcome of a successful transaction and charging it with positive emotions. If you haven't watched the movie "Wars with wall Street" (season 2), we highly recommend it (if you have an archive in the library, you can write us in your personal messages and we will send you a quick download link).
NASDAQ:LOVEEducation
by ivan_gold_star_
Book reviews | what is useful for a trader novel about India Many people believe that in order to successfully trade on the stock exchange, you need to study only specialized literature. I believe that a person should develop comprehensively, and business and life outside of business are an inseparable whole. And if a person has big problems in the family or difficulties in everyday life, it will sooner or later affect their work! But let's go to the review. To begin with, I read this book on the advice of a friend who said that almost everyone who read it carefully and to the end has since visited India. I am no exception, and I lived in India not passing through, and wintered from 2018 to 2019, and still stayed for the rainy season. I left this country in August 2019. As a rule, any book or event I have is analyzed to identify the TOP ideas or tips that I can apply in my life to improve it or make it better. In this book, the main idea for me is that if you really want something , then you should act without looking back, as if there is no road back and bridges have already been burned. This is what happened to the author of the book, who escaped from the strictest and most secure prison in Australia. I also realized that the power of visualization, charged with emotions, is incredibly strong and quickly brings you closer to your goal! I remember reading it and imagining slums, Indian cafes, smells and dishes. And then when I business traveled and studied Indian championship in football, and visiting different places (Guwhati, Mumbai, Bangalore, Delhi) I just remembered that this is exactly how I imagined it all! A lot of course in the book is invented and a lot of fictional stories, but the power of visualization really helps. For those who do not want to read this book or listen to the audio version, we have it in the library in various formats and we will share it with you without any problems. Well, for those who finally decide that the money you earn on the stock exchange is needed to spend it somewhere, I advise you to take a closer look at traveling to India, because this will really change your life! TOP 3 IDEAS how useful the book "Shantaram" will be for you" 1) Helps you learn how to visualize with emotions, which speeds up your goal achievement 2) Helps you understand that achieving a goal depends on determination, and bridges behind your back 3) Expands your horizons and makes the world much richer PS: photos are not added here, links are not inserted, so write in private messages.
NSE:COLPALEducation
by ivan_gold_star_
Reviews| A book that gives great advice in life NOT to give UP I will start my review with the fact that this is really a very interesting and useful book! Reading it and simultaneously looking at the places and buildings that appeared thanks to this person on the Internet, I was somehow transported to the past. Many interesting stories from the life of this great man really inspired me and inspire me to this day. How negotiations were conducted, how millions of investments were made, how new solutions had to be found, and most importantly, how it turned out to "not give up". Many will agree with me that the President of the most powerful country in the world can only be a man to match it - this is Donald trump! As you know, I work as a Manager in the financial markets, in particular trading on the betting exchange. I often share my deals online. And so it turned out that one of our deals was related to the victory of trump in the US elections in 2020. You can read more about this here: (link on request in private messages) So at the beginning, the deal was profitable, and we were so confident in its passage that we did not insure the position (hedge the risks with a reverse bid). It was also interesting that during the counting of votes, trump led on his coefficient fell from 3.0 to 1.45 and the probability of winning was 80%. But then something went wrong and trump began to lose. Our position also started to lose! The most interesting thing I saw was the reaction of people. Those who previously did not pay attention to our activities began to ridicule the allegedly lost deal, and the coefficient for trump's victory rose as much as 32! You can not imagine what kind of accusations I did not have to hear and the most amazing thing is that no one said a single word about the previous deals that we shared, and which brought a total income of more than +300% flat, none of them lost! We will specifically publish them here again: 1) 23.10.2020 (1) Khabib-Geiji result +35% (link on request in private messages) 2) 18.10.2020 (0) Rublev-Chorich result +29% (link on request in private messages) 3) 11.10.2020 (0) Djokovic – Nadal score +75% (reference upon request in private messages) 4) 30.09.2020 (0) PAOK FC Krasnodar result +60% (reference upon request in private messages) 5) 26.09.2020 (0) Adansonia – Costa result +60% (reference upon request in private messages) The most interesting thing is that if Biden is already President now, why don't you bet $ 1 million on his victory and earn +10% "guaranteed" (liquidity makes it possible, the turnover for this event is almost a billion dollars) or it's scary that trump "won't give up" and will become President? And we have already added a bit to the position by the coefficient of 21-32 and will wait for the outcome of the event. And even if we lose, we will definitely win back with the next deals. PS: If someone is interested, you can look at interesting stories on our page, we saved a couple of screenshots with stories for a change. And our next book to read will be: Nassim Taleb's "black Swan" and I think you know why.
NYSE:PFEEducation
by ivan_gold_star_
And the wind blew, the earth split and it appeared ...The birth of BTC pumpkin. One dark dark evening, in a terrible 2017, when huge incomes of investors drove them to euphoric blood-strokes, it was born... Vegetable electronic evil , the king of margin calls, garden crypto ganster - BTC pumpkin. With the right hand, it weakens the growing trend , and with the left hand it attracts with overbought stochastics, bear patterns and low volumes of bold sellers in the position ...and vice versa... And no one knows peace from it for 3 years! BTC Pumpkin's worst weapon is its mood. The bipolar disorder of this vitamin monster changes the mood every six months . Will we see a new wave of BTC Pumpkin bad mood? What is more terrifying, grater, blender or saw? Today is the day when the crypto pumpkin knocks on the deposit house of every investor and says "treat or margin call?" We hope you love sweets! Can the BTC market free itself from the Pumpkin shackles? It remains to wait only six months... P.S. Drug use is bad for your health and hampers your trading.
BITFINEX:BTCUSDEducation
by P_S_trade
7